Lawsuit: BofA Attempted Foreclosure On 'Ike-Ravaged' Home Over Unpaid $107K Loan Despite Sitting On $196K Pile Of Cash From Insurance Proceeds

In Harris County, Texas, Ultimate Clear Lake (a product of the Houston Chronicle and Chron.com) reports:

• A woman is suing Bank of America after her home, located in Clear Lake, was damaged by Hurricane Ike. Marie Holmes filed a lawsuit on Jan. 13 in the Harris County District Court against BAC Home Loans and Bank of America, alleging breach of contract and breach of duty.

• Holmes says that the defendant continues to hold onto $196,000 in insurance funds, distributed to repair the damage caused to her Clear Lake home by Hurricane Ike. According to the brief, Holmes, whose current principal balance on the home is $106,985.35, repeatedly asked the defendants to use the insurance funds to pay off her mortgage.

• To date, the defendants have failed to honor her request, have charged her over $28,000 in interest and late fees, and have posted her home for foreclosure on numerous occasions, Holmes says.

• Holmes is seeking actual and exemplary damages, as well as attorney’s fees and court costs. She is being represented in the case by Austin attorney Molly Rogers. Harris County District Court Case No. 2010-02490.

Source: Clear Lake resident sues Bank of America over insurance funds, foreclosure postings.